Example: Technical AI Screener (Momentum-Based)

Momentum trading is all about catching stocks that are moving strongly in one direction.

Instead of waiting for fundamentals to play out over years, momentum traders ride short- to medium-term trends.

AI can help here by building a momentum-based screener — using indicators like Moving Averages, RSI, and MACD to shortlist stocks that show strong price action.

What Momentum Means

• A stock trading above its 200-day moving average (200-DMA) shows long-term strength.
  
• RSI between 40–60 suggests steady momentum without being overbought.
  
• A MACD bullish crossover often signals upward continuation.
  

Together, these conditions can give you a practical list of stocks riding an uptrend.

The Prompt (How to Ask AI)

Here’s a sample momentum screener prompt you can reuse:

“Find Nifty 100 stocks trading above their 200-DMA, with RSI between 40 and 60, and MACD showing a bullish crossover. Show results in a table with columns: Stock, Price, 200-DMA, RSI, MACD Signal.”

This combines three key momentum filters in one prompt.

This is a shortlist — not a buy list. The next step is to study charts and news before making any decision.

How to Backtest This Prompt

You can check if these rules worked in the past:

1. Take the same prompt.
   
2. Ask AI: “Backtest this screener on Nifty 100 data from 2018–2022. Show average returns and win rate vs Nifty index.”
   
3. Compare the output with benchmark returns.
   

If the screener consistently beat Nifty across cycles, the rules have merit.

How to Automate It

• Save this prompt in your Google Sheets automation (from earlier lessons).
• Run it daily at 9:05 am.
  
• Output goes into a table, and you can highlight RSI or MACD signals with conditional formatting.
  
• Over time, you build a daily tracker of momentum candidates.
  

Final Takeaway

Momentum screeners help you ride trends instead of fighting them. AI makes it easy to combine multiple technical indicators into one clear shortlist. Start with simple prompts like price above 200-DMA + RSI in mid-range. Backtest them on past data. Then automate daily scans so you always have fresh momentum candidates to review.

Remember: momentum is about speed and discipline — never skip risk management while chasing trends.